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When is the last time you heard of a new refinery being built. Crude supply isn't the only issue. If they are running the refineries at 100%, it doesn't matter if we have more crude or not.
On the other hand, I am old enough to remember the 70's "gas crisis". In the SF Bay Area I flew a helicopter over the refineries in Richmond and Benicia. All the storage tanks were full. The roofs of the storage tanks move up and down with the gas/diesel inside. The shortage was BS. Watch Exxon, Chevron, Shell stocks and financial reports in the next quarter.
I still can not figure out the pricing skeme on this commodity. If there is any speculation that inventories are dropping, whether it be crude oil or gasoline, the price at the pump takes a huge jump. Yesterday they anounced inventories of crude and gas have risen substantially yet the price at the pump remains unchanged. I'm not blaming the station owners as the have a margin of 1-3 cents a gallon but someone out there is making a boat load of EDTIED OUT
The other morning needed diesel, stopped to get some and the pump automatically shut off at $25.00, was told by clerk this is a fraud protection so I can only get $25.00 of fuel at one time. So I went to work and on the way home stopped at a different gas station, it stopped at $50.00, talked to clerk, got same answer as in the morning. Told her I'm not full, need more. Got another $15.00 to top off. It cost me $90.00 to fill up 35 gallons. $2.57/gallon. Ridiculous. Central California (Merced area)
This article refers to a new refinery, the first in over 20 years in this country, to be built in Yuma, AZ, soley for the refining of Diesel fuel. The shortage of US refining capabilities and the emerging Chinese consumption as well as the popularity of Diesel vehicles further exasebate the cost and supply problem but this refinery which is expected to go on line in a year will surely help.
The ACF refienery has been a subject of discussion for at least five years that I know of. If it ever gets built, it would not be a significant addition to US refining capacity at 160K BBL/day. At this point, it still has no financing and Bechtel, who ACF lists as the E&C company for the project does not even list this as a current project. I would not expect to see this refinery on line for at least 7-10 years away if it ever happens.
I was hauling some equipment to Great Falls Montana this last week and it seemed the further West I went the worse it was $2.37 in central WI. $2.55 in Great Falls.
Bad , Bad, Bad
DMAX,
Next time you make that run come up and see Glacier Park! I have motives here, need some good WI cheese curds and maybe a chub or 2..... Can't get either here
Oh, and a friend of mine has a farm and he sometimes runs the <COUGH>co-op farm fuel</COUGH>. I think there is no tax on it and it is way cheaper. LOL I don't think you can do this if you pull loads on the road and have to pass the weigh scales. He says if they dip your tank and find the red dye, they can fine or take your truck. You'd also be in a hurt locker if you got pulled over by DOT and they dipped your tank.
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